BLA - Motor car traders

General information | Penalties | Exemptions |

Online Register Now Available
An online search of the motor car trader register is now available for free.

General information
The Motor Car Traders Act 1986 regulates individuals, partnerships and corporations that trade in motor cars. Trading in motor cars means to buy, sell, advertise or exchange motor cars, whether as the principal or an agent, but not as an employee.

Under the Act, you may be deemed to be a motor car trader if you:

Buy, sell or exchange four or more motor cars in any 12-month period on your own behalf or as an agent;
In some cases, buy, sell or exchange less than four motor cars in a 12-month period; or;
Offer to do any of the above.

You must hold a motor car trader's licence to trade in motor cars in Victoria, unless you are exempt under the Act.

If you enter a partnership with an individual or corporation intending to trade in motor cars, you must hold a partnership motor car trader's licence.

A licence is ongoing until it is surrendered, suspended or cancelled.

Penalties
If you trade in motor cars without a licence, you can be liable to a fine of 100 penalty units (one penalty unit = $110.20) or more for each motor car bought, sold or exchanged, or offered as such, unless you are exempt under the Act.

Exemptions
A motor car trader's licence may not be required if an individual, partnership or corporation is, or, in some cases, is offering to:

Buy from, sell to or exchange cars with a licensed motor car trader, a special trader, or any of their employees;
Buy from, sell to or exchange cars with a related company (bodies corporate);
Sell repossessed or returned cars by public auction or tender (finance companies);
Privately sell to buyers introduced by people from whom the cars were repossessed (finance companies);
Sell a car to someone who has just leased the vehicle for an uninterrupted time of at least three months; or,
Buy or sell at public auction organised by a liquidator (appointed under the Corporations Law or by order of the Supreme Court of Victoria) any motor car last owned:

For more information, see Parts 1 and 2 of the Motor Car Traders Act 1986. Consult your legal adviser if you are uncertain whether or not you need a licence.

Australian Corporations Legislation
If you intend to operate a business through a company, you need to be aware of both the Director's and Company Secretary's responsibilities under the Australian Corporations Legislation. Visit the Australian Securities & Investments Commission website to find out more about the legislation requirements.